On average, AutoNews reports that 3.58 percent of 18 to 29-year-olds and 2.62 percent of 30- to 39-year-olds have been late on their auto loans by at least 90 days. For some context, just 2.13 percent of all borrowers are late. Keep in mind, these numbers are overall. In the first quarter of 2023, 4.55 percent of 18- to 29-year-olds were at least 90 days late. 3.66 percent of 30- to 39-year-olds were equally late. We haven’t seen numbers like these since The Great Recession.
Boo-fucken-hoo
The transaction price for new car purchases keeps on going up. All these young people think they deserve some $50k luxury SUV on their near minimum wage barista salary. No one wants to live within their budget.
Just over $48k is the average price of a new car right now. To realistically be able to afford that much car, you should be making well over $130k. Are you making that much money? So why the fuck do you think you can afford a nearly $50k car??
There are plenty of cars that sell for way less than $48k, but everyone these days thinks they deserve luxury thanks to brainwashing by influencers and FOMO.
I think a big part of it is also financial literacy. No eduction on how to manage your finances whatsoever and people make dumb mistakes when paired up with predatory dealers/financing.
I’m kind of sick of the excuses, quite honestly. Yeah, there is a lot of financial illiteracy out there, but there is also more importation out there to teach people than ever before. A simple google search of “how much car I can afford” or “car loan calculator” will pull a ton of sites which give you good, honest results for what you can REALLY afford. But people rather watch influencers with their rented out Bentleys than search for financial advise.
You can lead a horse to water but something something 30% APR something something.
You’re assuming these car loans taken out are exclusively for new vehicles - new car purchases have been increasingly the domain of the “rich” who will continue to skew the “average” up and up. Bentley just celebrated the best financial results earlier this year and will do a lot to push up the average even with what Gen Z that can afford new on their own hypothetically buying Mirages and Versas.
Something something Bill Gates walking into a bar and everyone inside becoming a billionaire on average.
And certain job sectors being hit en masse probably doesn’t help those who did buy new but that’s pure speculation on my part.
That’s a whole lot of yapping for “I don’t want to live within my means”. Could have saved you a bunch of typing.
Decided to axe my snarkier comment to instead express that I hope you feel better and are more amenable to learning about mean/median/mode as well as the demographics of who buys new in the future.
you wasted an extra sentence instead of simply writing “I won’t read or do math” 🙄
I bought used so ¯_(ツ)_/¯
I think that you shouldn’t finance a car in the first place. If yoy can’t afford new buy maybe a couple years old but a car is think not worth financing. Especially because it loses value so quickly
I agree that you shouldn’t finance a car, but unless you’ve got ten grand saved up you can’t afford one, and most people in the US need them to get around due to our shitty public transit.
Public transport is shitty in Belgium too but 10K for a simple car? People who can’t afford a new car should imo buy a used shitbox and not fonance something(unless it’s some rare car/oldtimer as investment).
You’d be hard-pressed to find a reliable used car for under $10k in my area. Anything less than that is over 15 years old and probably won’t last long. And even then the cheapest thing I can find is still almost $5,000
Rip, here you can find old(10-20y olds) but seemingly reliable cars for 2-5k
Considering millenials are reaching middle age now, I can’t help but read this like the boomer “avocado toast” memes when you call us “young people.”
You should do some more research on new car buyer demographics. Young people, if buying new, are buying the cheap little econoboxes while every other segment is being purchased by 55-60 year olds. Those are the people buying $50k-$100k vehicles.